¹ Sir Robert Goff, “Commercial Contracts and the Commercial Court” [1984] L.M.C.L.Q. 382, at 391.

² Prenn v Simmonds [1971] 1 W.L.R. 1381 (HL), 1389.

³ Mannai Investment Co. v Eagle Star Life Assurance [1997] A.C. 749 (HL), 771.

⁴ Rainy Sky S.A. v Kookmin Bank [2011] UKSC 50; [2011] 1 W.L.R. 2900, at [21], per Lord Clarke.

⁵ Arnold v Britton [2015] UKSC 36; [2015] A.C. 1619, at [15].

⁶ No distinction is drawn between “commercial” and “business” common sense.

⁷ Law Land Company Ltd. v Consumers' Association Ltd. [1980] 2 E.G.L.R. 109, per Brightman L.J.; Jackson v Dear [2012] EWHC 2060 (Ch), at [40](vii), per Briggs J. (reversed, but not on this point, [2013] EWCA Civ 89; [2014] 1 B.C.L.C. 186).

⁸ Re Golden Key [2009] EWCA Civ 636 at [28], per Arden L.J.

⁹ BS&N Ltd. (BVI) v Micado Shipping Ltd. (Malta) (“The Seaflower”) [2001] C.L.C. 421, at [82], per Jonathan Parker L.J.

¹⁰ Re Golden Key [2009] EWCA Civ 636, at [28], per Arden L.J.

¹¹ Hut Group Ltd. v Nobahar-Cookson [2016] EWCA Civ 128, at [30], per Briggs L.J.

¹² Arnold [2015] UKSC 36; [2015] A.C. 1619, at [21], per Lord Neuberger; Ravennavi SpA v New Century Shipbuilding Co. Ltd. [2007] EWCA Civ 58; [2007] 2 All E.R. (Comm.) 756; [2007] 2 Lloyd's Rep. 24; [2007] 1 C.L.C. 176, at [12], per Moore-Bick L.J.

¹³ Mannai Investment Co. [1997] A.C. 749 (HL), 771, per Lord Steyn.

¹⁴ LB Re Financing No. 3 Ltd. v Excalibur Funding No. 1 plc [2011] EWHC 2111 (Ch), at [46], per Briggs J.

¹⁵ Unite the Union v Liverpool Victoria Banking Services Ltd. [2015] EWCA Civ 285, at [34], [35], per Christopher Clarke L.J.

¹⁶ Torvald Klaveness A/S v Arni Maritime Corporation [1994] 1 W.L.R. 1465 (HL), 1473, per Lord Mustill.

¹⁷ Calnan, R., Principles of Contractual Interpretation (Oxford 2014)Google Scholar; Lewison on the Interpretation of Contracts, 6th ed. (London: Sweet & Maxwell, 2015)Google Scholar; McMeel, G., The Construction of Contracts: Interpretation, Implication and Rectification, 2nd ed. (Oxford 2011)Google Scholar; Mitchell, C., Interpretation of Contracts, 2nd ed. (Abingdon, Oxon forthcoming 2017)Google Scholar; from an Australian perspective, Carter, J.W., The Construction of Commercial Contracts (Oxford 2013)Google Scholar.

¹⁸ Globe Motors Inc. v TRW Lucas Varity Electric Steering Ltd. [2016] EWCA Civ 396, at [56]ff.

¹⁹ In Mutual Energy Ltd. v Starr Underwriting Agents Ltd., Travellers Syndicate Management Ltd. [2016] EWHC 590 (TCC); [2016] B.L.R. 312; 165 Con. L.R. 220, at [14], per Coulson J., citing Wood v Sureterm Direct Ltd. & Capita Insurance Services Ltd. [2015] EWCA Civ 839 at [28] to [31], per Christopher Clarke L.J. (on the latter case, see text at nn. 203–204 below).

²⁰ Electricity Generation Corpn v Woodside Energy Ltd. [2014] HCA 7; (2014) 251 C.L.R. 640; 306 A.L.R. 25; 88 A.L.J.R. 447, at [35]; Maintech Services Pty Ltd. v Stein Heurtey S.A. [2014] NSWCA 184; (2014) 89 N.S.W.L.R. 633, notably at [69], [71], [82], [84], [105], [106], [115]–[121], per Leeming J.A.; Mount Bruce Mining Pty Limited v Wright Prospecting Pty Limited [2015] HCA 37, at [51], [52], [107]–[113], [118]–[123]; J.W. Carter, “Context and Literalism in Construction” (2014) 31 J.C.L. 100; Carter, The Construction of Commercial Contracts.

²¹ Canada: Sattva Capital Corp. v Creston Mining Corp. [2014] SCC 53; [2014] 2 S.C.R. 633, at [42]–[61]; noted S. Waddams (2015) 131 L.Q.R. 48–52; Hall, G.R., Canadian Contractual Interpretation Law, 2nd ed. (Markham, Ontario 2012)Google Scholar.

²² Hong Kong: Fully Profit (Asia) Ltd. v Secretary for Justice [2013] HKCFA 40; [2013] 6 H.K.C. 374; (2013) 16 H.K.C.F.A.R. 351, at [15]; Jumbo King Ltd. v Faithful Properties Ltd. [1999] HKCFA 38; [1999] 3 H.K.L.R.D. 757; (1999) 2 H.K.C.F.A.R. 279; [1999] 4 H.K.C. 707, at [59], per Lord Hoffmann N.P.J.; Andrews, N. and Yang, F., Contract Law in Hong Kong (Hong Kong 2016), ch. 9Google Scholar.

²³ New Zealand: Firm PI 1 Ltd. v Zurich Australian Insurance Ltd. [2014] NZSC 147; [2015] 1 N.Z.L.R. 432, at [88]–[93] (noted R. Havelock [2015] L.M.C.L.Q. 174–179); and see McLaughlan, D., “Contract Interpretation in the Supreme Court – Easy Case, Hard Law?” (2010) N.Z.B.L.Q. 229, at 236–38Google Scholar.

²⁴ Singapore: Hewlett-Packard Singapore (Sales) Pte Ltd. v Chin Shu Hwa Corinna [2016] SGCA 19, at [54]–[56]; G. Yihan, “The New Contractual Interpretation in Singapore” [2013] Sing. J.L.S. 301.

²⁵ US: Burton, S.J., Elements of Contract Interpretation (New York 2009)Google Scholar; A. Schwartz and R.E. Scott, “Contract Interpretation Redux” (2010) 119 Yale L.J. 926; Gilson, R.J., Sabel, C.F. and Scott, R.E., “Text and Context: Contract Interpretation as Contract Design” (2014) 100 Cornell L.Rev. 23Google Scholar; Scott, R.E., “Text versus Context: The Failure of the Unitary Law of Contract Interpretation” in Buckley, F.H. (ed.), The American Illness: Essays on the Rule of Law (New Haven 2013)Google Scholar.

²⁶ Skanska Rashleigh Weatherfoil Ltd. v Somerfield Stores Ltd. [2006] EWCA Civ 1732; [2007] C.I.L.L. 2449, at [21], per Neuberger L.J.

²⁷ Prenn [1971] 1 W.L.R. 1381 (HL), 1384–85, per Lord Wilberforce; Investors Compensation Scheme Ltd. v West Bromwich Building Society (No 1) [1998] 1 W.L.R. 896 (HL), 913, per Lord Hoffmann; Chartbrook Ltd. v Persimmon Homes Ltd. [2009] UKHL 38; [2009] 1 A.C. 1101, at [28]–[47], per Lord Hoffmann.

²⁸ Earlier, Marley v Rawlings [2014] UKSC 2; [2015] A.C. 129, at [19].

²⁹ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [15].

³⁰ “What we call the beginning is often the end And to make an end is to make a beginning. The end is where we start from” (T.S. Eliot, Little Gidding).

³¹ McCutcheon v David MacBrayne Ltd. [1964] 1 W.L.R. 125 (HL), per Lord Reid; G. Leggatt, “Making Sense of Contracts: The Rational Choice Theory” (2015) 131 L.Q.R. 454.

³² Burrows, A., A Restatement of the English Law of Contract (Oxford 2016)Google Scholar, s. 5 (“freedom of contract”), ss. 6(2), 14(1) (objectivity); Andrews, N., Contract Rules; Decoding English Law (Cambridge 2016)Google Scholar, Articles 1 (freedom of contract), 2 (objectivity), 3 (binding force of agreement), 4 (estoppel), 5 (good faith and fair dealing: a latent principle).

³³ Investors Compensation Scheme Ltd. [1998] 1 W.L.R. 896 (HL), 912–13.

³⁴ Ibid., at p. 913, per Lord Hoffmann.

³⁵ Chartbrook Ltd. [2009] UKHL 38; [2009] 1 A.C. 1101, at [28]–[47], per Lord Hoffmann.

³⁶ Oceanbulk Shipping and Trading S.A. v TMT Asia Ltd. [2010] UKSC 44; [2011] 1 A.C. 662; Paul S. Davies [2011] C.L.J. 24–27.

³⁷ Whitworth Street Estates (Manchester) Ltd. v James Miller & Partners Ltd. [1970] A.C. 583 (HL), 603, per Lord Reid.

³⁸ Daventry District Council v Daventry & District Housing Ltd. [2011] EWCA Civ 1153; [2012] 1 W.L.R. 1333, at [227], per Etherton L.J.

³⁹ Ibid., at paras [54], [55], [78]–[80], [159], [179]–[181], [195]–[197], per Lord Neuberger M.R.; Chartbrook Ltd. [2009] UKHL 38; [2009] 1 A.C. 1101, at [60]–[65].

⁴⁰ George Wimpey UK Ltd. v VI Components Ltd. [2005] EWCA Civ 77; [2005] B.L.R. 135; 103 Con L.R. 67; [2005] 2 P. & C.R. DG5; D. McLauchlan, “The ‘Drastic’ Remedy of Rectification for Unilateral Mistake” (2008) 124 L.Q.R. 608–40.

⁴¹ Investors Compensation Scheme Ltd. [1998] 1 W.L.R. 896 (HL), 912–13, propositions (iv) and (v).

⁴² Chartbrook Ltd. [2009] UKHL 38; [2009] 1 A.C. 1101, at [22]–[25], per Lord Hoffmann.

⁴³ Investors Compensation Scheme Ltd. [1998] 1 W.L.R. 896 (HL), 913 (rule (5)).

⁴⁴ E.g. Burrows, A.S., “Construction and Rectification”, in Burrows, A.S. and Peel, E. (eds.), Contract Terms (Oxford 2007), 77 Google Scholar; R. Buxton, “‘Construction’ and Rectification after Chartbrook” [2010] C.L.J. 253.

⁴⁵ E.g. Chartbrook Ltd. [2009] UKHL 38; [2009] 1 A.C. 1101 (noted D. McLaughlan (2010) 126 L.Q.R. 8–14); Pink Floyd Music Ltd. v EMI Records Ltd. [2010] EWCA Civ 1429; [2011] 1 W.L.R. 770. Caresse Navigation Ltd. v Zurich Assurances Maroc [2014] EWCA Civ 1366; [2015] Q.B. 366 (noted F. Chan (2015) 131 L.Q.R. 372).

⁴⁶ In Marley [2014] UKSC 2; [2015] A.C. 129, at [37], [39], Lord Neuberger declared “controversial” the invitation to engage in extensive “corrective construction” made by Lord Hoffmann in Chartbrook Ltd. [2009] UKHL 38; [2009] 1 A.C. 1101, at [25] (“there is not, so to speak, a limit to the amount of red ink or verbal rearrangement or correction which the court is allowed”).

⁴⁷ Calnan, Principles of Contractual Interpretation, 7.134: “it does look very much like a form of summary rectification (‘rectification lite’).”

⁴⁸ Trump International Golf Club Scotland v Scottish Ministers [2015] UKSC 74; [2015] 1 W.L.R. 85, at [33], per Lord Hodge: “there has been a harmonisation of the interpretation of contracts, unilateral notices, patents and also testamentary documents.”

⁴⁹ Kirin-Amgen Inc. v Hoechst Marion Roussel Ltd. [2004] UKHL 46; [2005] 1 All E.R. 667; [2005] R.P.C. 9, at [32].

⁵⁰ Trump International Golf Club Scotland [2015] UKSC 74; [2015] 1 W.L.R. 85; R. (on the application of Robert Hitchins Ltd.) v Worcestershire CC [2015] EWCA Civ 1060; [2016] J.P.L. 373, at [28].

⁵¹ BNY Mellon Corporate Trustee Services Ltd. v LBG Capital No.1 plc [2015] EWCA Civ 1257; [2016] 2 B.C.L.C. 163, at [80]–[90] (affmd., but without deciding this point, [2016] UKSC 29; [2016] 2 Lloyd's Rep. 119).

⁵² Mannai Investment Co. Ltd. [1997] A.C. 749 (HL).

⁵³ Prenn [1971] 1 W.L.R. 1381 (HL), 1389.

⁵⁴ Reardon Smith Line Ltd. v Yngvar Hansen-Tangen (“The Diana Prosperity”) [1976] 1 W.L.R. 989 (HL), 995–97; on which see Lord Neuberger, “The Impact of Pre- and Post-Contractual Conduct on Contractual Interpretation” (Banking Services and Finance Law Association Conference, Queenstown, 2014), at [18], available at <https:// www.supremecourt.uk/docs/speech-140811.pdf> (last accessed 2 September 2016).

⁵⁵ Homburg Houtimport BV v Agrosin Private Ltd. (“The Starsin”) [2003] UKHL 12; [2004] 1 A.C. 715, at [10].

⁵⁶ Ravennavi SpA [2007] EWCA Civ 58; [2007] 2 All E.R. (Comm.) 756; [2007] 2 Lloyd's Rep. 24; [2007] 1 C.L.C. 176, at [12], per Moore-Bick L.J.

⁵⁷ E.g. Napier Park European Credit Opportunities Fund Ltd. v Harbourmaster Pro-Rata CLO 2 BV [2014] EWHC 1083 (Ch), at [42], per Sir Terence Etherton C.; reversed [2014] EWCA Civ 984, at [27], per Lewison L.J.

⁵⁸ Mannai Investment Co. [1997] A.C. 749, 771 (HL).

⁵⁹ BS&N Ltd. (BVI) [2001] C.L.C. 421, at [82], per Jonathan Parker L.J.

⁶⁰ Re Sigma [2009] UKSC 2; [2010] 1 All E.R. 571, at [35].

⁶¹ Jumbo King Ltd. [1999] HKCFA 38; (1999) 2 H.K.C.F.A.R. 279, at [59], per Lord Hoffmann N.P.J.

⁶² Globe Motors Inc. [2016] EWCA Civ 396, at [59].

⁶³ Arbuthnot v Fagan [1995] C.L.C. 1396 (CA), 1400.

⁶⁴ Homburg Houtimport BV [2003] UKHL 12; [2004] 1 A.C. 715, at [12].

⁶⁵ McCowan v Baine [1891] A.C. 401 (HL).

⁶⁶ Ibid., at p. 409.

⁶⁷ Ibid., at p. 403.

⁶⁸ Ibid., at pp. 411–12.

⁶⁹ Southland Frozen Meat and Produce Export Company Ltd. v Nelson Brothers Ltd. [1898] A.C. 442 (PC), 444, per Lord Herschell.

⁷⁰ Glynn v Margetson & Co. [1893] A.C. 351 (HL), 355.

⁷¹ Ibid., at p. 357.

⁷² Ibid., at p. 356.

⁷³ Ibid., at p. 356.

⁷⁴ Prenn [1971] 1 W.L.R. 1381 (HL), 1385.

⁷⁵ Ibid., at p. 1389.

⁷⁶ Re Golden Key Ltd. [2009] EWCA Civ 636, at [28], per Arden L.J.

⁷⁷ Bank of Nova Scotia v Hellenic Mutual War Risks Association (Bermuda) Ltd. (“The Good Luck”) [1990] Q.B. 818 (CA), 870 (reversed, but not on this point, [1992] 1 A.C. 233 (HL)).

⁷⁸ Lord Grabiner, “The Iterative Process of Contractual Interpretation” (2012) 128 L.Q.R. 41, at 46.

⁷⁹ Lewison on the Interpretation of Contracts, 6th ed., 2.08, p. 69.

⁸⁰ Reardon Smith Line Ltd. [1976] 1 W.L.R. 989 (HL), 995–96.

⁸¹ Jacobs v Scott & Co. (1899) 2 F (HL) 70.

⁸² Tidal Energy Ltd. v Bank of Scotland plc [2014] EWCA Civ 1107; [2015] 2 All E.R. 15 (noted, D. McLaughlan, [2015] L.M.C.L.Q. 406, at 408–09).

⁸³ Ibid., at para. [59].

⁸⁴ Ibid., at para. [62].

⁸⁵ Globe Motors Inc. [2016] EWCA Civ 396, at [75], per Beatson L.J.

⁸⁶ PST Energy 7 Shipping LLC v OW Bunker Malta Ltd. (“The Res Cogitans”) [2016] UKSC 23; [2016] A.C. 1034, notably at [28]–[31], [37], [39], [59], per Lord Mance.

⁸⁷ The supplier had not undertaken “to transfer title” in the goods under s. 2(1), Sale of Goods Act 1979.

⁸⁸ PST Energy 7 Shipping LLC [2016] UKSC 23; [2016] A.C. 1034, at [26], per Lord Mance.

⁸⁹ Ibid., at para. [27], per Lord Mance.

⁹⁰ [2015] EWCA Civ 1058; [2016] 2 W.L.R. 1072, at [18], per Moore-Bick L.J.

⁹¹ K. Rodgers and J.-h. Ho, “TAEL One Partners: Contractual Interpretation as an Iterative Process” (2015) 5 J.B.L. 393, at n. 64.

⁹² E.g. the financial instrument considered in Re Sigma [2009] UKSC 2; [2010] 1 All E.R. 571.

⁹³ E.g. “safe port” warranties in time charterparties: Kodros Shipping Corp. of Monrovia v Empresa Cubana de Fletes (“The Evia”) [1983] 1 A.C. 736 (HL), 757.

⁹⁴ Liverpool City Council v Irwin [1977] A.C. 239 (HL).

⁹⁵ Pink Floyd Music Ltd. [2010] EWCA Civ 1429, at [58] (not reproduced at [2011] 1 W.L.R. 770).

⁹⁶ Antaios Cia Naviera S.A. v Salen Rederierna AB [1985] A.C. 191 (HL), 201.

⁹⁷ Rainy Sky S.A. [2011] UKSC 50; [2011] 1 W.L.R. 2900, at [20], [22]–[29] (noted Paul S. Davies [2012] L.M.C.L.Q. 26–29).

⁹⁸ Ibid., at para. [21].

⁹⁹ Rainy Sky S.A. [2011] UKSC 50; [2011] 1 W.L.R. 2900, at [30].

¹⁰⁰ The idea has a long lineage, e.g. Lord Blackburn in Caledonian Railway Company v North British Railway Company (1880–81) L.R. 6 App. Cas. 114 (HL), 131 (HL); Grey v Pearson (1857) 6 H.L.C. 61, 106, per Lord Wensleydale.

¹⁰¹ E.g. Antaios Cia Naviera S.A. [1985] A.C. 191 (HL), 201, per Lord Diplock.

¹⁰² MFI Properties Ltd. v BICC Group Pension Trust Ltd. [1986] 1 All E.R. 974, 976D, per Hoffmann J. (“commercially irrational”).

¹⁰³ Miramar Maritime Corp. v Holborn Oil Trading Ltd. [1984] A.C. 676 (HL), 682, per Lord Diplock.

¹⁰⁴ Skanska Rashleigh Weatherfoil Ltd. [2006] EWCA Civ 1732; [2007] C.I.L.L. 2449, at [22], per Neuberger L.J.; Calnan, Principles of Contractual Interpretation, 7.29.

¹⁰⁵ Antaios Cia Naviera S.A. [1985] A.C. 191 (HL), 200–01, per Lord Diplock.

¹⁰⁶ Miramar Maritime Corp. [1984] A.C. 676 (HL), 684–85.

¹⁰⁷ Torvald Klaveness A/S [1994] 1 W.L.R. 1465 (HL), 1473.

¹⁰⁸ Wood [2015] EWCA Civ 839, at [31] (appeal outstanding: permission to appeal granted 25 February 2016).

¹⁰⁹ Schuler (L) AG v Wickman Machine Tool Sales Ltd. [1974] A.C. 235 (HL), 251.

¹¹⁰ Charter Reinsurance Co. Ltd. v Fagan [1997] A.C. 313, 387–8 (HL).

¹¹¹ BP Oil International Ltd. v Target Shipping Ltd. [2012] EWHC 1590 (Comm); [2012] 2 C.L.C. 336; [2012] 2 Lloyd's Rep. 245, at [150], per Andrew Smith J.

¹¹² Chartbrook Ltd. [2009] 1 A.C. 1101, at [15], per Lord Hoffmann.

¹¹³ Sugarman v CJS Investments LLP [2014] EWCA Civ 1239; [2015] 1 B.C.L.C. 1, at [43], per Briggs L.J.; Calnan, Principles of Contractual Interpretation, ch. 7.

¹¹⁴ Investors Compensation Scheme Ltd. [1998] 1 W.L.R. 896 (HL), 913.

¹¹⁵ Napier Park European Credit Opportunities Fund Ltd. [2014] EWCA Civ 984, at [33], per Lewison L.J.; Leggatt, “Making Sense of Contracts”, pp. 470–71.

¹¹⁶ Rainy Sky S.A. [2011] UKSC 50; [2011] 1 W.L.R. 2900, at [30].

¹¹⁷ E.g. Cohen v Tesco Properties Ltd. [2014] EWHC 2442 (Ch), at [31], per Sales J.

¹¹⁸ Fitzhugh v Fitzhugh [2012] EWCA Civ 694; [2012] 2 P. & C.R. 14, at [17]–[22]; D. McLaughlan, “The Lingering Confusion and Uncertainty in the Law of Contract Interpretation” [2015] L.M.C.L.Q. 406, at 432–34.

¹¹⁹ Prenn [1971] 1 W.L.R. 1381 (HL), 1389.

¹²⁰ Reardon Smith Line Ltd. [1976] 1 W.L.R. 989: see the long passage at 995–97, per Lord Wilberforce.

¹²¹ E.g. Lord Wilberforce's discussion in the Reardon case (preceding note) was cited by Steyn L.J. in Arbuthnott [1995] C.L.C. 1396 (CA), 1402, for the proposition that commercial purpose is relevant at all stages of construction.

¹²² MFI Properties Ltd. [1986] 1 All E.R. 974, 976D, per Hoffmann J. (the case contains no reference to the Reardon case [1976] 1 W.L.R. 989, but does refer to Antaios Cia Naviera S.A. [1985] A.C. 191 (HL), 200–01).

¹²³ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [15] (on the decision itself, see Z.X. Tan, “Beyond the Real and the Paper Deal: The Quest for Contextual Coherence in Contractual Interpretation” (2016) 79 M.L.R. 623, at 6544–652).

¹²⁴ Pink Floyd Music Ltd. [2010] EWCA Civ 1429, at [18] (not included at [2011] 1 W.L.R. 770).

¹²⁵ On the (narrow) doctrine of “judicial notice”, see Phipson on Evidence, 18th ed. (London 2013), 3-02ff.

¹²⁶ Rainy Sky S.A. [2011] UKSC 50; [2011] 1 W.L.R. 2900, at [21], per Lord Clarke; and Arnold [2015] UKSC 36; [2015] A.C. 1619, at [76], [77], per Lord Hodge.

¹²⁷ RWE Npower Renewables Ltd. v JN Bentley Ltd. [2013] EWHC 978 (TCC), at [23], per Akenhead J. (affmd. [2014] EWCA Civ 150, at [21]ff., per Moore-Bick L.J.).

¹²⁸ Skanska Rashleigh Weatherfoil Ltd. [2006] EWCA Civ 1732; [2007] C.I.L.L. 2449, at [18], per Neuberger L.J.

¹²⁹ Re Sigma [2009] UKSC 2; [2010] 1 All E.R. 571 at [12], per Lord Mance.

¹³⁰ Enterprise Inns plc v Palmerston Associates Ltd. [2011] EWHC 3165 (Ch), at [60], per Morgan J.

¹³¹ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [16]–[23], per Lord Neuberger.

¹³² Carillion Construction Limited v Woods Bagot Europe Limited [2016] EWHC 905 (TCC); [2016] B.L.R. 382 (appeal outstanding).

¹³³ Ibid., at para. [34] (appeal outstanding).

¹³⁴ Ibid., at para. [35] (appeal outstanding).

¹³⁵ Ibid., at para. [60] (appeal outstanding).

¹³⁶ Ibid., at para. [61] (appeal outstanding).

¹³⁷ Ibid., at para. [61]; see also [60] (appeal outstanding).

¹³⁸ Rainy Sky S.A. [2011] UKSC 50; [2011] 1 W.L.R. 2900, at [21].

¹³⁹ Ibid., at para. [30].

¹⁴⁰ Ibid., at para. [28] (drawing on remarks by Lord Neuberger in Re Sigma [2008] EWCA Civ 1303; [2009] B.C.C. 393, at [98], [115], [131]). For an illustration of this “iterative” process, see TAEL One Partners Ltd. v Morgan Stanley & Co. International plc [2015] UKSC 12; [2015] 4 All E.R. 545, at [37], [41]–[45], per Lord Reed (noted K. Rodgers and J.-h. Ho (2015) 5 J.B.L. 393–409).

¹⁴¹ Procter and Gamble Co. v Svenska Cellulosa Aktiebolaget SCA [2012] EWCA Civ 1413, at [22], per Moore-Bick L.J.

¹⁴² LB Re Financing No. 3 Ltd. EWHC 2111 (Ch), at [46], per Briggs J.

¹⁴³ Sugarman [2014] EWCA Civ 1239; [2015] 1 B.C.L.C. 1, at [28], per Floyd L.J.

¹⁴⁴ RWE Npower Renewables Ltd. [2013] EWHC 978 (TCC), at [30], per Akenhead J. (upheld [2014] EWCA Civ 150).

¹⁴⁵ Ibid., at para. [23].

¹⁴⁶ Ibid., at para. [24], per Akenhead J. (upheld [2014] EWCA Civ 150).

¹⁴⁷ Sans Souci Ltd. v VRL Services Ltd. [2012] UKPC 6, at [14], per Lord Sumption.

¹⁴⁸ Napier Park European Credit Opportunities Fund Ltd. [2014] EWCA Civ 984, at [26], per Lewison L.J.

¹⁴⁹ Ibid., at para. [26], per Lewison L.J.

¹⁵⁰ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [77].

¹⁵¹ Edgeworth Capital (Luxembourg) SARL v Ramblas Investments BV [2016] 1 All E.R. (Comm.) 368, at [45]–[48].

¹⁵² Flanagan v Liontrust Investment Partners LLP [2015] EWHC 2171 (Ch); [2015] Bus. L.R. 1172; [2016] 1 B.C.L.C. 177, at [132]–[136], per Henderson J.

¹⁵³ Cottonex Anstalt v Patriot Spinning Mills Ltd. [2014] EWHC 236 (Comm); [2014] 1 Lloyd's Rep. 615, at [56], per Hamblen J.

¹⁵⁴ Ibid., at para. [56].

¹⁵⁵ Cf. ibid., at para. [74]; Globe Motors Inc. [2016] EWCA Civ 396, at [60], per Beatson L.J.

¹⁵⁶ Soufflet Negoce S.A. v Fedcominvest Europe Sarl [2014] EWHC 2405 (Comm); [2014] 2 Lloyd's Rep. 537; [2014] 2 C.L.C. 39, at [19]–[29], per Eder J.

¹⁵⁷ Tartsinis v Navona Management Co. [2015] EWHC 57 (Comm), at [54].

¹⁵⁸ “There may be trouble ahead But while there's moonlight And music and love and romance Let's face the music and dance” (Nat King Cole).

¹⁵⁹ Rainy Sky S.A. [2011] UKSC 50; [2011] 1 W.L.R. 2900 (see text at nn. 97–99 and 138–139 above).

¹⁶⁰ Aston Hill Financial Inc. v African Minerals Finance Ltd. [2012] EWHC 2173 (Comm), at [27], per Eder J. (affmd. [2013] EWCA Civ 416).

¹⁶¹ Ibid., at para. [31], per Eder J. (affmd. [2013] EWCA Civ 416).

¹⁶² E.g. ENER-G Holdings plc v Hormell [2012] EWCA Civ 1059; [2013] 1 All E.R. (Comm.) 1162, at [57], per Gross L.J. (although Lord Neuberger M.R. at [31]–[33] identified strong commercial reasons).

¹⁶³ Kahn v Dunlop Haywards (DHL) Ltd. [2007] EWHC 2659 (QB), at [65], per Foskett J.

¹⁶⁴ Cottonex Anstalt [2014] EWHC 236 (Comm); [2014] 1 Lloyd's Rep. 615, at [57], per Hamblen J.

¹⁶⁵ Torvald Klaveness A/S [1994] 1 W.L.R. 1465 (HL), 1473.

¹⁶⁶ Rice v Great Yarmouth Borough Council, The Times, 26 July 2000; (2001) 3 L.G.L.R. 4 (CA).

¹⁶⁷ Ibid., at para. [22], per Hale L.J.

¹⁶⁸ Ibid. , adopting Antaios Compania Naviera S.A. [1985] A.C. 191 (HL), 200–01.

¹⁶⁹ Ibid., at para. [17], per Hale L.J.

¹⁷⁰ E.g. Chen-Wishart, M., Contract Law, 5th ed. (Oxford 2015), 493 CrossRefGoogle Scholar; McKendrick, E., Text, Cases, and Materials, 7th ed. (Oxford 2016), 787 Google Scholar.

¹⁷¹ Manchester Sheffield & Lincolnshire Railway Co. v Brown (1883) 8 App. Cas. 703 (HL), 716, per Lord Bramwell: “here is a contract made by a fishmonger and a carrier of fish who know their business and whether it is just and reasonable is to be settled by me who am neither fishmonger nor carrier, nor with any knowledge of their business.”

¹⁷² Cf. in the US, on rejection of “merchant tribunals”, R.E. Scott, “The Rise and Fall of Article 2” (2002) 62 Louisiana L.Rev. 1009, at 1034–35.

¹⁷³ Skanska Rasleigh Weatherfoil Ltd. [2006] EWCA Civ 1732; [2007] C.I.L.L. 2449, at [22].

¹⁷⁴ Lord Neuberger, “The impact of pre–and post-contractual conduct on contractual interpretation” (Banking Services and Finance Law Association Conference, Queenstown, 2014), at [18], available at <https:// www.supremecourt.uk/docs/speech-140811.pdf> (last accessed 2 September 2016).

¹⁷⁵ Lewison on the Interpretation of Contracts, 6th ed., 2.08, concluding paragraph, p. 69.

¹⁷⁶ MFI Properties Ltd. [1986] 1 All E.R. 974.

¹⁷⁷ Rainy Sky S.A. [2011] UKSC 50; [2011] 1 W.L.R. 2900.

¹⁷⁸ Rainy Sky S.A. [2009] EWHC 2624 (Comm); [2010] 1 All E.R. (Comm.) 823.

¹⁷⁹ Kookmin Bank v Rainy Sky S.A. [2010] EWCA Civ 582; [2011] 1 All E.R. (Comm.) 18; [2011] 1 Lloyd's Rep. 233, at [30].

¹⁸⁰ Calnan, Principles of Contractual Interpretation, 7.14.

¹⁸¹ Jackson [2012] EWHC 2060 (Ch), at [40](vii), per Briggs J. (reversed, but not on this point, [2013] EWCA Civ 89; [2014] 1 B.C.L.C. 186).

¹⁸² Arnold [2015] UKSC 36; [2015] A.C. 1619, at [17], per Lord Neuberger.

¹⁸³ Ibid., at paras [18]–[20], [77], [110].

¹⁸⁴ Skanska Rashleigh Weatherfoil Ltd. [2006] EWCA Civ 1732; [2007] C.I.L.L. 2449, at [21], per Neuberger L.J.

¹⁸⁵ Charter Reinsurance Co. Ltd. [1997] A.C. 313 (HL), 388.

¹⁸⁶ Procter and Gamble Co. [2012] EWCA Civ 1413, at [22], per Moore-Bick L.J.

¹⁸⁷ ING Bank NV v Ros Roca S.A. [2011] EWCA Civ 353; [2012] 1 W.L.R. 472, at [110].

¹⁸⁸ Jackson [2012] EWHC 2060 (Ch), at [40](vii), per Briggs J.

¹⁸⁹ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [18], per Lord Neuberger.

¹⁹⁰ Deutsche Genossenschaftsbank v Burnhope [1995] 1 W.L.R. 1580 (HL) (Lord Steyn dissented).

¹⁹¹ City Alliance Ltd. v Oxford Forecasting Services Ltd. [2001] 1 All E.R. Comm. 156, at [13].

¹⁹² Jackson [2013] EWCA Civ 89; [2014] 1 B.C.L.C. 186, at [22], [41], per McCombe L.J.; Marks & Spencer v BNP Paribas [2015] UKSC 72; [2016] A.C. 742, at [16], [17], affirming “The Moorcock” (1889) 14 P.D. 64 (CA), 68, per Bowen L.J. and Shirlaw v Southern Foundries (1926) Ltd. [1939] 2 K.B. 206 (CA), 227–28, per MacKinnon L.J. (affmd. [1940] A.C. 701 (HL)).

¹⁹³ Chartbrook Ltd. [2009] UKHL 38; [2009] 1 A.C. 1101, at [20], per Lord Hoffmann; Wood [2015] EWCA Civ 839 (appeal outstanding: permission to appeal granted 25 February 2016), at [29].

¹⁹⁴ Grove Investments Ltd. v Cape Building Products Ltd. [2014] CSIH 43; (2014) Hous. L. Rep. 35, at [10], per Lord Drummond Young.

¹⁹⁵ MFI Properties Ltd. [1986] 1 All E.R. 974, 976, per Hoffmann J.; Aston Hill Financial Inc. [2013] EWCA Civ 416, at [23].

¹⁹⁶ Royal Society for the Prevention of Cruelty to Animals v Sharp [2010] EWCA Civ 1471; [2011] 1 W.L.R. 980, at [32], per Lord Neuberger M.R.

¹⁹⁷ Prenn [1971] 1 W.L.R. 1381 (HL), 1385.

¹⁹⁸ Re Sigma [2008] EWCA Civ 1303; [2009] B.C.C. 393, at [100], per Lord Neuberger (his dissenting judgment was preferred on appeal: [2009] UKSC 2; [2010] 1 All E.R. 571).

¹⁹⁹ Chartbrook Ltd. [2009] UKHL 38; [2009] 1 A.C. 1101, at [20], per Lord Hoffmann; Firm PI 1 Ltd. [2014] NZSC 147; [2015] 1 N.Z.L.R. 432, at [91], per Arnold J.

²⁰⁰ Safeway Food Stores Ltd. v Banderway Ltd. (1983) 2 E.G.L.R. 116, per Goulding J.

²⁰¹ MFI Properties Ltd. [1986] 1 All E.R. 974, 976 F, per Hoffmann J.

²⁰² Pink Floyd Music Ltd. [2010] EWCA Civ 1429, at [81], per Carnwath L.J. (a problem which led him to dissent) (passage not included at [2011] 1 W.L.R. 770).

²⁰³ Wood [2015] EWCA Civ 839 (appeal outstanding).

²⁰⁴ Ibid., at para. [29].

²⁰⁵ Sinochem International Oil (London) Co. Ltd. v Mobil Sales & Supply Corporation [2000] 1 All E.R. (Comm.) 474; [2000] 1 Lloyd's Rep. 339; [2000] C.L.C. 878 (CA), at [11], per Mance L.J.

²⁰⁶ Mitsui Construction Co. Ltd. v Att-Gen of Hong Kong (1986) 33 B.L.R. 1, 14; (1986) 10 Con. L.R. 1; [1987] H.K.L.R. 1076, P.C., per Lord Bridge.

²⁰⁷ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [18], per Lord Neuberger.

²⁰⁸ Sinochem International Oil (London) Co. Ltd. [2000] 1 All E.R. (Comm.) 474; [2000] 1 Lloyd's Rep. 339 CA, at [27], [29], per Mance L.J.; Kennedy L.J. dissented.

²⁰⁹ Re Golden Key Ltd. [2009] EWCA Civ 636, at [29], per Arden L.J.; Cohen [2014] EWHC 2442 (Ch), at [30], per Sales J.

²¹⁰ In Globe Motors Inc. [2016] EWCA Civ 396, at [75], Beatson L.J. admitted that “the Agreement was poorly drafted”, but this did not prevent the court from subjecting it to textual scrutiny (at [78], [79], [84]–[87]).

²¹¹ Thorney Park Golf Ltd. v Myers Catering Ltd. [2015] EWCA Civ 19, at [24], per McCombe L.J.; Xia Zhengyan v Geng Changqing [2015] SGCA 22; [2015] 3 S.L.R. 732, at [45]–[60] (document translated from Chinese and drafted without legal advice).

²¹² Caution is required: see nn. 224–227 below on the reversal in Globe Motors Inc. [2016] EWCA Civ 396, notably at [36], [37], [83], [84], of [2014] EWHC 3718 (Comm).

²¹³ Wood [2015] EWCA Civ 839, at [49] (appeal outstanding: permission to appeal granted 25 February 2016); Maintech Services Pty Ltd. [2014] NSWCA 184; (2014) 89 N.S.W.L.R. 633, at [105]–[107], per Leeming J.A.

²¹⁴ Wood [2015] EWCA Civ 839, at [50] (appeal outstanding: permission to appeal granted 25 February 2016).

²¹⁵ Re Sigma [2009] UKSC 2; [2010] 1 All E.R. 571, at [12], [37]; see also [2008] EWCA Civ 1303; [2009] B.C.C. 393, at [100].

²¹⁶ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [18], per Lord Neuberger.

²¹⁷ LB Re Financing No. 3 Ltd. [2011] EWHC 2111 (Ch), at [45], per Briggs J.

²¹⁸ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [19], per Lord Neuberger. Contrast, adopting a quite different perspective under Scots law, Grove Investments Ltd. [2014] CSIH 43; (2014) Hous L Rep. 35, at [10], per Lord Drummond Young.

²¹⁹ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [20].

²²⁰ Wood [2015] EWCA Civ 839, at [30] (appeal outstanding: permission to appeal granted 25 February 2016), quoting Arnold [2015] UKSC 36; [2015] A.C. 1619, at [20], per Lord Neuberger.

²²¹ Norwich Union Life and Pensions v Linpac Mouldings Ltd. [2010] 1 P. & C.R. 218, at [44], per Lewison J. (affmd. [2010] EWCA Civ 395; [2010] L. & T.R. 10); Aston Hill Financial Inc. [2013] EWCA Civ 416, at [24], per Aikens L.J.

²²² Chartbrook Ltd. [2009] UKHL 38; [2009] 1 A.C. 1101, at [20].

²²³ RWE Npower Renewables Ltd. [2013] EWHC 978 (TCC), at [22], per Akenhead J. (affmd. [2014] EWCA Civ 150).

²²⁴ Globe Motors Inc. [2016] EWCA Civ 396, at [83]–[87].

²²⁵ Ibid., at paras [83], [85].

²²⁶ Globe Motors case [2014] EWHC 3718 (Comm), at [181], per Judge Mackie Q.C.

²²⁷ The false step in the trial judge's construction is pin-pointed by Beatson L.J., Globe Motors Inc. [2016] EWCA Civ 396, at [36], [37], [83], [84].

²²⁸ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [19], per Lord Neuberger.

²²⁹ RWE Npower Renewables Ltd. [2013] EWHC 978 (TCC), at [22], per Akenhead J. (affmd. [2014] EWCA Civ 150).

²³⁰ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [70], per Lord Hodge; Procter and Gamble Co. [2012] EWCA Civ 1413, at [22], [38], per Moore-Bick and Rix L.J.J.

²³¹ Arnold [2015] UKSC 36; [2015] A.C. 1619, at [155], per Lord Carnwath.

²³² Ibid.: “the case seems to cry out for expert mediation.”

²³³ Ibid., at para. [65], per Lord Neuberger, and [79], per Lord Hodge.

²³⁴ MSC Mediterranean Shipping Co. S.A. v Cottonex Anstalt [2016] EWCA Civ 789, at [45], per Moore-Bick L.J.

²³⁵ Andrews, N., Contract Law, 2nd ed. (Cambridge 2015), ch. 21 (and citing copious literature)Google Scholar; see also Andrews, Contract Rules, Article 5.

²³⁶ MSC Mediterranean Shipping [2015] EWHC 283 (Comm); [2015] 2 All E.R. (Comm.) 614; [2015] 1 Lloyd's Rep. 359, at [97], [98].

²³⁷ For other cautious comments, see Beatson L.J. in Globe Motors Inc. [2016] EWCA Civ 396, at [68].

²³⁸ E.g. Starlight Shipping Co. v Allianz Marine & Aviation Versicherungs AG [2014] EWHC 3068 (Comm); [2015] 2 All E.R. (Comm.) 747; [2014] 2 Lloyd's Rep. 579, at [51], per Flaux J. (“literalism” and construction which “defies business sense”), at [52] (“absurdity” and congruence with “business common sense”), at [53], [54] (promotion of the “clear objective intention” of a settlement agreement).